Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide.

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VEHICLES(625 ILCS 5/) Illinois Vehicle Code.

625 ILCS 5/7-206

(625 ILCS 5/7-206)(from Ch. 95 1/2, par. 7-206)Sec. 7-206. Release from liability. (a) A person shall be
relieved from the requirement for deposit of security required by Section
7-201 in the event there shall be filed with the Secretary
of State satisfactory evidence that the person
who would otherwise be required to deposit security has been released from liability.(b) A covenant not to sue shall relieve the parties thereto
as to each other from the security requirements of this Article.(Source: P.A. 83-831.)

625 ILCS 5/7-207

(625 ILCS 5/7-207)(from Ch. 95 1/2, par. 7-207)Sec. 7-207. Adjudication of non-liability. A person shall be relieved from the requirement for deposit of security,
required by Section 7-201 of this Act, in the event there shall be filed
with the Secretary of State evidence satisfactory of a final adjudication
of non-liability.(Source: P.A. 77-327.)

625 ILCS 5/7-208

(625 ILCS 5/7-208)(from Ch. 95 1/2, par. 7-208)Sec. 7-208. Agreements for payment of damages. (a) Any 2
or more of the persons involved in
a motor vehicle accident subject
to the provisions of Section 7-201 or their authorized representatives,
may at any time enter into a
written agreement for the payment of an agreed amount in installments, with
respect to all claims for injuries or damages resulting from the motor
vehicle accident.(b) The Secretary of State, to the extent provided by any
such written agreement properly filed with him, shall not require the
deposit of security and shall terminate any prior order of suspension, or,
if security has
previously been deposited, the Secretary of State shall immediately return
such security to the depositor or an appropriate personal representative.(c) In the event of a default in any payment under such agreement
and upon notice of such default the Secretary of State shall forthwith suspend
the driver's license and registration, or nonresident's
operating privileges, of such person in default which shall not be restored
unless and until:1. Such person deposits and thereafter maintains

security as required under Section 7-201 in such amount as the Secretary of State may then determine,

2. Two years have elapsed since the acceptance of the

notice of default by the Secretary of State and during such period no action upon such agreement has been instituted in any court having jurisdiction, or

3. The person enters into a second written agreement

for the payment of an agreed amount in installments with respect to all claims for injuries or damages resulting from the motor vehicle accident.

(Source: P.A. 90-774, eff. 8-14-98.)

625 ILCS 5/7-209

(625 ILCS 5/7-209)(from Ch. 95 1/2, par. 7-209)Sec. 7-209. Payment upon judgment. The payment of a judgment arising out
of a motor vehicle accident or the payment upon such judgment
of an amount equal to the maximum amount which could be required for deposit
under this Article shall for the purposes of this Code be
deemed satisfied.(Source: P.A. 83-831.)

625 ILCS 5/7-210

(625 ILCS 5/7-210)(from Ch. 95 1/2, par. 7-210)Sec. 7-210. Termination of Security Requirement. The Secretary of State, if satisfied as to the existence of any fact
which under Sections 7-206, 7-207, 7-208, or 7-209 would entitle a person
to be relieved from the security requirements of this Article, shall not
require the deposit of security by the person so relieved from such
requirement and shall terminate any prior order of suspension in respect to
such person, or if security has previously been deposited by such person,
the Secretary of State shall immediately return such deposit to such
person.(Source: P.A. 76-1586.)

625 ILCS 5/7-211

(625 ILCS 5/7-211)(from Ch. 95 1/2, par. 7-211)Sec. 7-211. Duration of suspension. (a) Unless a suspension is terminated
under other provisions of this Code, the driver's license or registration
and nonresident's operating privilege suspended as provided in Section
7-205 shall remain suspended and shall not be renewed nor shall any
license or registration be issued to the person until:1. The person deposits or there shall be deposited

and filed on the person's behalf the security required under Section 7-201;

2. Two years have elapsed following the date the

driver's license and registrations were suspended and evidence satisfactory to the Secretary of State that during the period no action for damages arising out of a motor vehicle accident has been properly filed;

3. Receipt of proper notice that the person has filed

bankruptcy which would include all claims for personal injury and property damage resulting from the accident; or

4. After the expiration of 5 years from the date of

the accident, the Secretary of State has not received documentation that any action at law for damages arising out of the motor vehicle accident has been filed against the person.

An affidavit that no action at law for damages arising
out of the motor vehicle accident has been filed against the applicant,
or if filed that it is not still pending shall be prima facie evidence
of that fact. The Secretary of State may take whatever steps are necessary
to verify the statement set forth in the applicant's affidavit.(b) The driver's license or registration and nonresident's operating
privileges suspended as provided in Section 7-205 shall also remain suspended
and shall not be renewed nor shall any license or registration be issued to the
person until the person gives proof of his or her financial responsibility in
the future as provided in Section 1-164.5. The proof is to be
maintained by the
person in a manner satisfactory to the Secretary of State for a period of 3
years after the date the proof is first filed.(Source: P.A. 90-264, eff. 1-1-98; 91-80, eff. 7-9-99.)

625 ILCS 5/7-212

(625 ILCS 5/7-212)(from Ch. 95 1/2, par. 7-212)Sec. 7-212. Authority of Administrator and Secretary of State to decrease
amount of
security. The Administrator may reduce the amount of security ordered in any
case
within one year after the date of the accident, but in no event for an
amount less than $1,500 (or $500 if any of the vehicles involved in the accident is subject to Section 7-601 but is not covered by a liability insurance policy in accordance with Section 7-601), if, in the judgment of the Administrator the amount
ordered is excessive, or may revoke or rescind its order requiring the
deposit of security in any case within one year after the date of the
accident if, in the judgment of the Administrator, the provisions of
Sections 7-202 and 7-203 excuse or exempt the operator or owner from the
requirement of the deposit. In case the security originally ordered has
been deposited the excess of the reduced amount ordered shall be returned
to the depositor or his personal representative forthwith, notwithstanding
the provisions of Section 7-214. The Secretary of State likewise shall have
authority granted to the Administrator to reduce the amount of security
ordered by the Administrator.(Source: P.A. 95-754, eff. 1-1-09.)

625 ILCS 5/7-213

(625 ILCS 5/7-213)(from Ch. 95 1/2, par. 7-213)Sec. 7-213. Custody of security. Security deposited in compliance with
the requirements of this Article shall be placed by the Secretary
of State in the custody of the State Treasurer.(Source: P.A. 83-831.)

625 ILCS 5/7-214

(625 ILCS 5/7-214)(from Ch. 95 1/2, par. 7-214)Sec. 7-214. Disposition of Security. Such security shall be applicable only to the payment of a judgment or
judgments, rendered against the person or persons on whose behalf the
deposit was made, for damages arising out of the accident in question, in
an action at law, begun not later than two years after the later of
(i)
the date the driver's license and registration were suspended
following the accident
or (ii) the
date of any default in any payment under an installment agreement for payment
of damages, and such deposit or any balance thereof shall be returned to the
depositor or his personal representative when evidence satisfactory to the
Secretary of State has been filed with him:1. that there has been a release from liability, or

a final adjudication of non-liability; or

2. a duly acknowledged written agreement in

accordance with Section 7-208 of this Act; or

3. whenever after the expiration of two years after

the later of (i) the date the driver's license and registration were suspended following the accident or (ii) the date of any default in any payment under an installment agreement for payment of damages, the Secretary of State shall be given reasonable evidence that there is no such action pending and no judgment rendered in such action left unpaid.

If, after releasing security to a judgment debtor or claimant, the balance of the security posted with the Secretary is $5 or less, the balance shall be transferred to the General Revenue Fund. The
Secretary shall compile a list of all security amounts of $5 or less annually in July and shall certify that amount to the State Comptroller. As soon as possible after receiving the certification, the State Comptroller shall order transferred and the State Treasurer shall transfer the amount certified to the General Revenue Fund. (Source: P.A. 98-178, eff. 1-1-14.)

625 ILCS 5/7-215

(625 ILCS 5/7-215)(from Ch. 95 1/2, par. 7-215)Sec. 7-215. Matters not to be evidence in civil suits. Any action taken pursuant to this Chapter, or the Rules and
Regulations adopted hereunder, or findings of the Administrator or the Secretary
of State upon which such action is based, or the security filed as provided in
this Article shall not be referred to in any way, nor shall
it be any evidence of the negligence or due care of either party, at the
trial of any civil action to recover damages.(Source: P.A. 83-831.)

625 ILCS 5/7-216

(625 ILCS 5/7-216)(from Ch. 95 1/2, par. 7-216)Sec. 7-216. Reciprocity - Residents and nonresidents
- Licensing of nonresidents. (a) When
a nonresident's operating privilege is suspended
pursuant to Section 7-205 the Secretary of State shall transmit a certified
copy of the record of such action to the official in charge of the issuance
of driver's license and registration certificates in the state in which
such nonresident resides, if the law of such other
state provides for action in relation thereto similar to that provided for
in paragraph (b).(b) Upon receipt of such certification that the operating
privilege of a resident of this State has been suspended or revoked in any such other
state pursuant to a law providing for its suspension or revocation for
failure to deposit security for the payment of judgments arising out of a
motor vehicle accident, or for failure to deposit security under
circumstances which would require the Secretary of State to suspend a
nonresident's operating privilege had the motor
vehicle accident occurred in this State, the Secretary of State shall
suspend the driver's license of such resident and all other registrations.
Such suspension shall continue until such resident
furnishes evidence of compliance with the law of such other state
relating to the deposit of such security.(c) In case the operator or the owner of a motor vehicle involved
in a motor vehicle accident within this State has no driver's
license or registration, such operator shall not be allowed a
driver's license or registration until the operator has complied
with the requirements of Sections 7-201 thru 7-216 to the same extent that would be
necessary if, at the time of the motor vehicle accident, such operator
had held a license and registration.(Source: P.A. 83-831.)

625 ILCS 5/Ch. 7 Art. III

(625 ILCS 5/Ch. 7 Art. III heading)

ARTICLE III. PROOF OF

FINANCIAL RESPONSIBILITY FOR THE FUTURE

625 ILCS 5/7-301

(625 ILCS 5/7-301)(from Ch. 95 1/2, par. 7-301)Sec. 7-301. Application of Article III. The provisions of this Article
requiring the deposit of proof of financial responsibility for the future,
subject to certain exemptions, shall apply with respect to persons whose
driver's license or driving privileges have been revoked as provided by
this Code, or who have failed to pay judgments amounting to $500 or
more as defined in Section 7-303.(Source: P.A. 86-549; 87-829.)

(625 ILCS 5/7-303)(from Ch. 95 1/2, par. 7-303)Sec. 7-303. Suspension of driver's licenses, registration
certificates, license plates and registration stickers for failure to satisfy
judgment. (a) The Secretary of State shall, except as provided in paragraph
(d), suspend the driver's license issued to any
person upon receiving an authenticated report as hereinafter provided for
in Section 7-307 that the
person has failed for a period of 30 days to satisfy any final
judgment in amounts as hereinafter stated, and shall also suspend the
registration certificate, license plates and registration
sticker of the judgment debtor's motor vehicle involved in the crash as indicated in the authenticated report.(b) The term "judgment" shall mean: A final judgment of any court of
competent jurisdiction of any State, against a person as defendant for
damages on account of bodily injury to or death of any person or damages to
property resulting from the operation, on and after July 12, 1938, of any
motor vehicle.(c) The term "State" shall mean: Any State, Territory, or possession of
the United States, the District of Columbia, or any province of the
Dominion of Canada.(d) The Secretary of State shall not suspend the driver's
license, registration certificates, registration stickers or license
plates of the judgment debtor, nor shall such judgment debtor be subject
to the suspension provisions of Sections 7-308 and 7-309 if all the following
conditions are met:1. At the time of the motor vehicle accident which

gave rise to the unsatisfied judgment the judgment debtor was covered by a motor vehicle liability policy or bond meeting the requirements of this Chapter;

2. The insurance company which issued the policy or

bond has failed and has suspended operations by order of a court;

3. The judgment debtor had no knowledge of the

insurance company's failure prior to the motor vehicle accident;

4. Within 30 days after learning of the insurance

company's failure the judgment debtor secured another liability policy or bond meeting the requirements of this Article relating to future occurrences or accidents;

5. The insurance company which issued the motor

vehicle liability policy or bond that covered the judgment debtor at the time of the motor vehicle accident is unable to satisfy the judgment in the amounts specified in Section 7-311;

6. The judgment debtor presents to the Secretary of

State such certified documents or other proofs as the Secretary of State may require that all of the conditions set forth in this Section have been met.

(Source: P.A. 98-178, eff. 1-1-14.)

625 ILCS 5/7-304

(625 ILCS 5/7-304)(from Ch. 95 1/2, par. 7-304)Sec. 7-304. Proof required. Upon the revocation of a driver's
license of any person as provided in Section 6-113, 6-205 or 6-206, the
Secretary of State shall suspend any and all of the registration certificates,
license
plates and registration stickers issued for any
motor vehicle registered in the name of such person as owner except that
the Secretary shall not suspend such evidences of registration
in the event such owner has previously given or shall immediately give
the Secretary and thereafter maintain for a period of
3 years, proof of financial responsibility in the manner hereinafter
specified in this Article with respect to each and every motor vehicle owned
and registered by such person.(Source: P.A. 83-831.)

625 ILCS 5/7-305

(625 ILCS 5/7-305)(from Ch. 95 1/2, par. 7-305)Sec. 7-305. Suspension until proof furnished. The suspension of such
certificates
of registration, license plates and registration stickers
of such person as provided for in Section 7-304 shall remain in
effect and the Secretary of State shall not issue to any such person any
new or renewal of driver's license and shall not register
or re-register in the name of such person any motor vehicle until permitted
under this Article and not then unless and until said person
gives proof of his financial responsibility in the future, as defined in
this Code, such proof to be maintained by said person in
a manner satisfactory to the Secretary of State for a period of 3 years
after the date such proof is first filed.(Source: P.A. 90-89, eff. 1-1-98.)

625 ILCS 5/7-306

(625 ILCS 5/7-306)(from Ch. 95 1/2, par. 7-306)Sec. 7-306. Action in respect to an unlicensed driver. Whenever any person who is not a resident of this State has been
convicted of an offense which would require the revocation of the driver's
license of a resident, such nonresident shall not operate
any motor vehicle in this State nor shall any motor vehicle owned by such
nonresident be operated within this State by any person, and the
Secretary of State shall not issue to such nonresident
any driver's license and shall not register any motor vehicle
owned by such nonresident unless and until such nonresident shall
give proof of financial responsibility.(Source: P.A. 83-831.)

625 ILCS 5/7-307

(625 ILCS 5/7-307)(from Ch. 95 1/2, par. 7-307)Sec. 7-307. Courts to report nonpayments of judgment. The clerk of a court, or the judge of a court which has no clerk, or the judgment creditor or his or her attorney of record
shall forward to the Secretary of State, on a form prescribed by the
Secretary, a certified record of any judgment for damages, the rendering
and nonpayment of which judgment required the suspension of the driver's
license and registrations in the name of the judgment debtor hereunder,
such record to be forwarded to the Secretary of State upon request by the
plaintiff after the expiration of 30 days after such judgment has become
final and when such judgment has not been stayed or satisfied within the
amounts specified in this Article as shown by the records of the Court.(Source: P.A. 98-1028, eff. 8-22-14.)

625 ILCS 5/7-308

(625 ILCS 5/7-308)(from Ch. 95 1/2, par. 7-308)Sec. 7-308. Action in respect to nonresident for
nonpayment of judgment. (a) If a
person, whose failure to satisfy a judgment within
30 days after the same became final would
require a suspension or revocation hereunder in respect to a resident,
shall not be a resident of
this State, such nonresident shall not operate any
motor vehicle in this State, nor shall any motor vehicle owned by such
nonresident be operated in this State by any
person and the Secretary of State shall not issue to such nonresident
a driver's license and shall not register
any motor vehicle owned by such nonresident unless
and until such nonresident shall give proof of financial
responsibility and shall satisfy any such judgment as required with
respect to a resident of this State.(b) The Secretary of State shall forward to the Motor Vehicle
Commissioner or state officer performing the functions of a Commissioner in
the state, foreign country, or province of the Dominion of Canada in which
a judgment debtor resides, a certified record of any unsatisfied judgment
rendered against such nonresident which requires suspension
of such nonresident's driving privileges in this State.(Source: P.A. 83-831.)

625 ILCS 5/7-309

(625 ILCS 5/7-309)(from Ch. 95 1/2, par. 7-309)Sec. 7-309. Suspension to continue until judgments paid and proof given. (a) The suspension of such driver's license, license plates
and registration stickers shall remain in effect and no other vehicle shall
be registered in the name of such judgment debtor, nor any new license issued
to such person (including any such person not previously licensed), unless
and until the Secretary of State receives authenticated documentation that
such judgment is satisfied, or dormant as provided for in Section 12-108 of
the Code of Civil Procedure, as now or hereafter amended, or stayed by
court order, and the judgment debtor gives proof of financial
responsibility, as hereinafter provided. The Secretary of State may
terminate the suspension of such person's driver's license,
license plates
and registration stickers and no proof of financial responsibility shall be
required on any existing suspensions under this Article which are more than 20
years old.(b) Whenever, after one judgment is satisfied and proof of financial
responsibility is given as herein required, another such judgment is
rendered against the judgment debtor for any motor vehicle accident
occurring prior to the date of the giving of said proof and such person
fails to satisfy the latter judgment within the amounts specified herein
within 30 days after the same becomes final, then the Secretary of State
shall again suspend the driver's license of such judgment debtor and shall
again suspend the registration of any vehicle registered in the name of
such judgment debtor as owner. Such driver's license and registration
shall not be renewed nor shall a driver's license and registration of any
vehicle be issued to such judgment debtor while such latter judgment
remains in effect and unsatisfied within the amount specified herein.(Source: P.A. 90-655, eff. 7-30-98.)

625 ILCS 5/7-310

(625 ILCS 5/7-310)(from Ch. 95 1/2, par. 7-310)Sec. 7-310. Petition for discharge filed in bankruptcy. A
petition for discharge filed in bankruptcy following the rendering of any judgment shall
relieve the judgment debtor from the requirements of this Chapter 7, except that the judgment debtor's drivers license shall remain suspended and may not be renewed, and the judgment debtor may not be issued a license or registration, until the judgment debtor gives proof of his or her financial responsibility in the future, as provided in Section 1-164.5. The proof is to be maintained by the judgment debtor, in a manner satisfactory to the Secretary of State, for a period of 3 years after the date on which the proof is first filed.A petition for discharge filed in bankruptcy of the owner
or lessee of a commercial vehicle by whom the judgment debtor is employed
at the time of the motor vehicle accident that gives rise to the
judgment
also shall relieve the judgment debtor so employed from any of the
requirements of this Chapter 7 if the discharge of the owner or lessee
follows the rendering of the judgment and if the judgment debtor
so employed
was operating the commercial vehicle in connection with his
regular employment or occupation at the time of the accident.
This amendatory
act of 1985 applies to all cases irrespective of whether the accident
giving rise to the suspension of license or registration occurred before,
on, or after its effective date.(Source: P.A. 93-982, eff. 1-1-05.)

625 ILCS 5/7-311

(625 ILCS 5/7-311)(from Ch. 95 1/2, par. 7-311)Sec. 7-311. Payments sufficient to satisfy requirements. (a) Judgments herein referred to arising out of motor vehicle accidents
occurring on or after January 1, 2015 (the effective date of Public 98-519) shall for the purpose of this
Chapter be deemed satisfied:1. When $25,000 has been credited upon any judgment

or judgments rendered in excess of that amount for bodily injury to or the death of one person as the result of any one motor vehicle accident; or

2. When, subject to said limit of $25,000 as to any

one person, the sum of $50,000 has been credited upon any judgment or judgments rendered in excess of that amount for bodily injury to or the death of more than one person as the result of any one motor vehicle accident; or

3. When $20,000 has been credited upon any judgment

or judgments, rendered in excess of that amount for damages to property of others as a result of any one motor vehicle accident.

The changes to this subsection made by Public Act 98-519 apply only to policies issued or renewed on or after January 1, 2015. (b) Credit for such amounts shall be deemed a satisfaction of any such
judgment or judgments in excess of said amounts only for the purposes of
this Chapter.(c) Whenever payment has been made in settlement of any claim for bodily
injury, death or property damage arising from a motor vehicle accident
resulting in injury, death or property damage to two or more persons in
such accident, any such payment shall be credited in reduction of the
amounts provided for in this Section.(Source: P.A. 98-519, eff. 1-1-15; 99-78, eff. 7-20-15.)

625 ILCS 5/7-312

(625 ILCS 5/7-312)(from Ch. 95 1/2, par. 7-312)Sec. 7-312. Installment payment. (a) A judgment debtor upon 5 days notice
to the judgment creditor may apply to the
trial court in which the judgment was entered for the privilege of paying
such judgment in installments and the court in its discretion and without
prejudice to any other judicial remedies which the judgment creditor may
have may so order, fixing the amounts and times of payment of the installments.(b) The Secretary of State shall not suspend the driver's
license, registration or nonresident's operating privilege, and any suspended
driver's license or registration following nonpayment of a final judgment
shall be restored when the judgment debtor gives proof of financial responsibility
and when the judgment debtor obtains an order from the trial court permitting
the payment of such judgment in installments and while the payment of any
such installment is not in default.(Source: P.A. 83-1362.)

625 ILCS 5/7-313

(625 ILCS 5/7-313)(from Ch. 95 1/2, par. 7-313)Sec. 7-313. Suspension required upon breach of agreement. In the event
the judgment debtor fails to pay any installments as permitted by the order
of the court upon notice of such default, the Secretary of State,
upon receipt of a court order, shall
forthwith suspend the driver's license, registration certificate, license
plates, registration stickers or nonresident's operating privilege of the
judgment debtor until said judgment is satisfied as provided in Section 7-311
or a second installment payment plan is accepted as provided in Section
7-312.(Source: P.A. 90-774, eff. 8-14-98.)

625 ILCS 5/7-314

(625 ILCS 5/7-314)(from Ch. 95 1/2, par. 7-314)Sec. 7-314. Alternate methods of giving proof. Proof of financial responsibility
when required under this Article may be given by filing with the Secretary of State:1. A certificate of insurance as provided in Section 7-315 or Section
7-316;.2. A bond as provided in Section 7-320; or3. A deposit of securities as provided in Section 7-323.(Source: P.A. 83-831.)

625 ILCS 5/7-315

(625 ILCS 5/7-315)(from Ch. 95 1/2, par. 7-315)Sec. 7-315. A certificate of insurance proof. (a) Proof of financial
responsibility
may be made by filing with the Secretary of State the written or electronic
certificate
of any insurance carrier duly authorized to do business in this State,
certifying
that it has issued to or for the benefit of the person furnishing such proof
and named as the insured in a motor vehicle liability policy, a motor
vehicle liability policy or policies or in certain events an operator's
policy meeting the requirements of this Code and that said policy
or policies are then in full force and effect. All written or electronic certificates must be submitted in a manner satisfactory to the Secretary of State.
(b) Such certificate or certificates shall give the dates of issuance
and expiration of such policy or policies and certify that the same shall
not be canceled unless 15 days' prior written or electronic notice thereof
be given to the Secretary of State and shall explicitly describe all motor
vehicles covered thereby unless the policy or policies are issued to a person
who is
not the owner of a motor vehicle.(c) The Secretary of State shall not accept any certificate or
certificates unless the same shall cover all motor vehicles then registered
in this State in the name of the person furnishing such proof as owner and
an additional certificate or certificates shall be required as a condition
precedent to the subsequent registration of any motor vehicle or motor
vehicles in the name of the person giving such proof as owner.(Source: P.A. 94-239, eff. 1-1-06.)

625 ILCS 5/7-316

(625 ILCS 5/7-316)(from Ch. 95 1/2, par. 7-316)Sec. 7-316. Certificate furnished by nonresident
as proof. Any nonresident owner of a motor vehicle
not registered in this State may give proof of financial responsibility
by filing with the Secretary of State a certificate or certificates of an
insurance carrier authorized to transact business in the state or province
of the Dominion of Canada in
which the motor vehicle or motor vehicles described in such certificate
are registered, or if such nonresident does
not own a motor vehicle then in the state or province of the Dominion of
Canada in which the insured resides, and otherwise conforming to the provisions
of this Code, and the Secretary of State shall accept the same
if such carrier shall:1. Execute a power of attorney authorizing the Secretary of State to accept
service on its behalf of notice of process in any action arising out
of a motor vehicle accident in this State;2. Duly adopt a resolution which shall be binding upon it declaring that
its policies shall be deemed to be varied to comply with the laws of this
State relating to the terms of motor vehicle liability policies as required
by Section 7-317; and3. Agree to accept as final and binding any final judgment duly rendered
in any action arising out of a motor vehicle accident in any court of
competent jurisdiction in this State.(Source: P.A. 83-831.)

625 ILCS 5/7-316.1

(625 ILCS 5/7-316.1)Sec. 7-316.1. Nonresidents and former residents; when proof not required.(a) Any nonresident or former Illinois resident who (i) has met all requirements for reinstatement of his or her driving or registration privileges under this Chapter except for filing proof of financial responsibility, (ii) resides outside of Illinois, and (iii) has applied for a driver's license in another state, shall be released from the requirement of showing proof of financial responsibility in this State if he or she presents to the Secretary of State, in a manner satisfactory to the Secretary, notice of his or her out-of-state residency.(b) Any nonresident or former Illinois resident whose driver's license was revoked and who (i) has met all requirements for applying for driving privileges except for filing proof of financial responsibility under this Chapter, (ii) resides outside of Illinois, and (iii) has applied for a driver's license in another state, shall be released from the requirement of showing proof of financial responsibility in this State if he or she presents to the Secretary of State, in a manner satisfactory to the Secretary, notice of his or her out-of-state residency.(b-5) Any nonresident or former Illinois resident who has submitted satisfactory documentation to the Secretary of State to be released of showing proof of financial responsibility in this State shall have his or her Illinois license cancelled 60 days after acceptance of notice of cancellation, as provided in Section 6-201 of this Code. (c) If a nonresident or former Illinois resident released from the requirement of showing proof of financial responsibility in this State under subsection (a) or subsection (b) of this Section moves or returns to this State within 3 years of the date of release, that person must present to the Secretary of State, in a manner satisfactory to the Secretary, proof of insurance coverage during the period in which the person lived outside of Illinois. A person who fails to present the required proof may not be issued a driver's license until he or she presents proof of financial responsibility that is satisfactory under this Chapter. The proof of financial responsibility required under this subsection (c) must be shown or maintained for the period of time required under this Chapter.(d) The Secretary shall adopt rules for implementing this Section.(Source: P.A. 98-178, eff. 1-1-14.)

625 ILCS 5/7-317

(625 ILCS 5/7-317)(from Ch. 95 1/2, par. 7-317)Sec. 7-317. "Motor vehicle liability policy" defined. (a)
Certification. -A "motor vehicle liability policy", as that term is
used in this Act, means an "owner's policy" or an "operator's policy" of
liability insurance, certified as provided in Section 7-315 or Section
7-316 as proof of financial responsibility for the future, and issued,
except as otherwise provided in Section 7-316, by an insurance carrier
duly authorized to transact business in this State, to or for the
benefit of the person named therein as insured.(b) Owner's Policy. --Such owner's policy of liability insurance:1. Shall designate by explicit description or by

appropriate reference, all motor vehicles with respect to which coverage is thereby intended to be granted;

2. Shall insure the person named therein and any

other person using or responsible for the use of such motor vehicle or vehicles with the express or implied permission of the insured;

3. Shall insure every named insured and any other

person using or responsible for the use of any motor vehicle owned by the named insured and used by such other person with the express or implied permission of the named insured on account of the maintenance, use or operation of any motor vehicle owned by the named insured, within the continental limits of the United States or the Dominion of Canada against loss from liability imposed by law arising from such maintenance, use or operation, to the extent and aggregate amount, exclusive of interest and cost, with respect to each motor vehicle, of $25,000 for bodily injury to or death of one person as a result of any one accident and, subject to such limit as to one person, the amount of $50,000 for bodily injury to or death of all persons as a result of any one accident and the amount of $20,000 for damage to property of others as a result of any one accident. The changes to this paragraph made by this amendatory Act of the 98th General Assembly apply only to policies issued or renewed on or after January 1, 2015.

(c) Operator's Policy. --When an operator's policy is required, it
shall insure the person named therein as insured against the liability
imposed by law upon the insured for bodily injury to or death of any
person or damage to property to the amounts and limits above set forth
and growing out of the use or operation by the insured within the
continental limits of the United States or the Dominion of Canada of any
motor vehicle not owned by him.(d) Required Statements in Policies. --Every motor vehicle liability
policy must specify the name and address of the insured, the coverage
afforded by the policy, the premium charged therefor, the policy period,
and the limits of liability, and shall contain an agreement that the
insurance thereunder is provided in accordance with the coverage defined
in this Act, as respects bodily injury and death or property damage or
both, and is subject to all the provisions of this Act.(e) Policy Need Not Insure Workers' Compensation. --Any liability
policy or policies issued hereunder need not cover any liability of the
insured assumed by or imposed upon the insured under any workers'
compensation law nor any liability for damage to property in charge of
the insured or the insured's employees.(f) Provisions Incorporated in Policy. --Every motor vehicle
liability policy is subject to the following provisions which need not
be contained therein:1. The liability of the insurance carrier under any

such policy shall become absolute whenever loss or damage covered by the policy occurs and the satisfaction by the insured of a final judgment for such loss or damage shall not be a condition precedent to the right or obligation of the carrier to make payment on account of such loss or damage.

2. No such policy may be cancelled or annulled as

respects any loss or damage, by any agreement between the carrier and the insured after the insured has become responsible for such loss or damage, and any such cancellation or annulment shall be void.

3. The insurance carrier shall, however, have the

right to settle any claim covered by the policy, and if such settlement is made in good faith, the amount thereof shall be deductible from the limits of liability specified in the policy.

4. The policy, the written application therefor, if

any, and any rider or endorsement which shall not conflict with the provisions of this Act shall constitute the entire contract between the parties.

(g) Excess or Additional Coverage. --Any motor vehicle liability
policy may, however, grant any lawful coverage in excess of or in
addition to the coverage herein specified or contain any agreements,
provisions, or stipulations not in conflict with the provisions of this
Act and not otherwise contrary to law.(h) Reimbursement Provision Permitted. --The policy may provide that
the insured, or any other person covered by the policy shall reimburse
the insurance carrier for payment made on account of any loss or damage
claim or suit involving a breach of the terms, provisions or conditions
of the policy; and further, if the policy shall provide for limits in
excess of the limits specified in this Act, the insurance carrier may
plead against any plaintiff, with respect to the amount of such excess
limits of liability, any defense which it may be entitled to plead
against the insured.(i) Proration of Insurance Permitted. --The policy may provide for
the pro-rating of the insurance thereunder with other applicable valid
and collectible insurance.(j) Binders. --Any binder pending the issuance of any policy, which
binder contains or by reference includes the provisions hereunder shall
be sufficient proof of ability to respond in damages.(k) Copy of Policy to Be Filed with Department of
Insurance--Approval. --A copy of the form of every motor vehicle
liability policy which is to be used to meet the requirements of this
Act must be filed, by the company offering such policy, with the
Department of Insurance, which shall approve or disapprove the policy
within 30 days of its filing. If the Department approves the policy in
writing within such 30 day period or fails to take action for 30 days,
the form of policy shall be deemed approved as filed. If within the 30
days the Department disapproves the form of policy filed upon the ground
that it does not comply with the requirements of this Act, the
Department shall give written notice of its decision and its reasons
therefor to the carrier and the policy shall not be accepted as proof of
financial responsibility under this Act.(l) Insurance Carrier Required to File Certificate. --An insurance
carrier who has issued a motor vehicle liability policy or policies or
an operator's policy meeting the requirements of this Act shall, upon
the request of the insured therein, deliver to the insured for filing,
or at the request of the insured, shall file direct, with the Secretary
of State a certificate, as required by this Act, which shows that such
policy or policies have been issued. No insurance carrier may require
the payment of any extra fee or surcharge, in addition to the insurance
premium, for the execution, delivery or filing of such certificate.(m) Proof When Made By Endorsement. --Any motor vehicle liability
policy which by endorsement contains the provisions required hereunder
shall be sufficient proof of ability to respond in damages.(Source: P.A. 98-519, eff. 1-1-15.)

625 ILCS 5/7-318

(625 ILCS 5/7-318)(from Ch. 95 1/2, par. 7-318)Sec. 7-318. Notice of Cancellation or Termination of Certified Policy. When an insurance carrier has certified a motor vehicle liability policy
or policies under this Act, it shall notify the Secretary of State of any
cancellation by mailing a written or electronic notice at least 15 days prior to
cancellation of such policy and the policy shall continue in full force and
effect until the date of cancellation specified in such notice or until its
expiration, except that such a policy subsequently procured and certified
shall, on the effective date of its certification, terminate the insurance
previously certified with respect to any vehicle designated in both
certificates. All written or electronic certificates must be submitted in a manner satisfactory to the Secretary of State.
(Source: P.A. 94-239, eff. 1-1-06.)